Methods of Overhead Absorption There are various methods of absorption of factory overhead. Some of the methods are briefly explained below. 1. Production Unit or Cost Unit Method
Concepts of Cost Audit The Companies Act empowers the Government to direct specified class of companies to maintain records relating to cost. The cost records of such companies
Understanding Perpetual Inventory Valuation System Under Perpetual Inventory Valuation system, the value of balances is recorded after every receipt and issue of materials. It facilitates the physical verification
Factors of Minimum Stock Level The stock of materials should not be maintained below the minimum stock level at any cost. If so, the production will be affected.
General Purchase Procedure of a Company The purchase procedure of the company differ from one to the other. The following is the general purchase procedure. Specific forms and
What is a Contract Costing? Contract Costing is otherwise called as terminal costing. It is one of the methods of Job Costing. Contract costing is also prospered just
Selling and Distribution Overhead Selling and Distribution overhead is the combination of two words ie Selling overhead and Distribution overhead. What is Selling Overhead? Selling overhead is the
Over / Under absorption of overhead The overheads are absorbed on the basis of predetermined overhead absorption rate according to the actual production of goods throughout the accounting
What is Administration Overhead? Administration overhead is the indirect expenses incurred relating to the administration of a business concern. The administrative function covers the formulation of business policy,
What is Operating Costing? Operating costing is an extension and refined form of process costing. It is also more or less very similar to single or output costing.
